PRESS RELEASE

CCRSI National Results Highlights 

• STEADY PRICE GROWTH IN SECONDARY MARKETS OFFSETS SLOWDOWN AT TOP END OF CRE MARKET IN OCTOBER. The value-weighted U.S. Composite Index, which reflects larger asset sales common in core markets, fell a modest 0.5% in October 2019, despite a solid 7.5% gain in the 12-month period ending in October 2019. The flattening in price growth at the top of the market in October 2019 reflects the already strong price gains achieved in the core markets that led growth this cycle. The value-weighted US Composite Index is already 38% above its prior peak level reached in 2009. Meanwhile, the equal-weighted U.S. Composite Index, which reflects the more numerous but lower-priced property sales typical of secondary and tertiary markets, advanced by a stronger 0.6% in the month of October 2019, with a 7.1% gain in the 12-month period ending in October 2019. Secondary markets began their recovery later, but solid fundamentals performance this cycle has fueled late cycle price gains.
   
• THE RECENT MOMENTUM IN THE GENERAL COMMERCIAL SEGMENT DEMONSTRATES THE BREADTH OF THE PRICING RECOVERY. Recent pricing trends in the composite indices were mirrored in the two sub-indices of the equal-weighted U.S. Composite Index. The General Commercial segment, which is influenced by smaller, lower-priced properties, increased 1.1% in October 2019 and 8.1% for the 12-month period ending in October 2019. Meanwhile, the Investment-Grade segment, which reflects higher-value properties, fell 0.9% in October 2019, leading to annual growth of just 2% in the 12-month period ending in October 2019. 
• TRANSACTION VOLUME THROUGH THE FIRST 10 MONTHS OF 2019 ON PACE FOR RECORD YEAR. Composite pair volume of $121 billion through the first 10 months of 2019 was 2.7% higher than the same period in 2018, suggesting capital flows are increasing from last year’s record-setting levels. The rise in sales volume is relatively broad-based across markets, with the General Commercial segment up 3.5% and the Investment Grade segment increasing 2.4% year-to-date in October 2019.
• OTHER MEASURES DEMONSTRATE A LIQUID MARKET FOR BOTH BUYERS AND SELLERS. The average time on the market for for-sale properties dropped 4.9% in the 12-month period ending in October 2019 and the sale-price-to-asking-price ratio of 92.4% remained near a cyclical peak. Meanwhile, the share of properties withdrawn from the market by discouraged sellers remained near its two-year average of 27% in October 2019. 

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